Zebra invested in a mutual fund scheme at a time when its net asset value (NAV) was ₹ 12.65 per unit. 60 days later, the NAV of the scheme was ₹ 12.25 per unit. In the meantime, the scheme distributed ₹ 0.60 per unit as
CS Executive · Capital Market and Securities Laws · PYQS · June 2025
Zebra invested in a mutual fund scheme at a time when its net asset value (NAV) was ₹ 12.65 per unit. 60 days later, the NAV of the scheme was ₹ 12.25 per unit. In the meantime, the scheme distributed ₹ 0.60 per unit as dividend. (ii) Calculate the annualized return for Zebra.
Answer & Explanation:
Annualized return for Zebra = Holding Period Returns x (365 / Number of Days) = 1.58% x (365 / 60) = 1.58% x 6.0833 = 9.61% Alternate Answer to 5(c) (ii) as per the Applied Mathematics Annualized return for Zebra = (1 + Absolute Rate of Return) ^ (365 / Number of Days) - 1 Therefore, Annualized Return for Zebra = (1 + 0.0158) ^ 6.0833 - 1 = (1.0158) ^ 6.0833 - 1 = 0.10006 or 10.01%
Topics: Mutual Funds
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